Why have oil prices dropped sharply in recent days
Business
Oil prices just bounced back a bit after a sharp fall—March WTI crude is trading near $62 per barrel, below last week's highs.
The price dip came after Middle East tensions eased, and things calmed as the dollar got stronger and some risks faded.
US-Iran talks, Venezuela's oil exports add to supply
The US and Iran are actually talking (with a key meeting set for February 6), raising hopes for less drama in the region.
Meanwhile, Venezuela ramped up its oil exports in January, adding more supply to an already crowded market.
A stronger dollar pushes prices lower
A stronger dollar plus big sell-offs in gold and copper have pushed oil prices lower too.
With so much volatility—and more oil flooding in from countries like Venezuela—prices could keep bouncing until things settle down globally.